No government approval yet to clear 45 Chinese investments

A report on Monday stated that India was set to clear 45 investment proposals from China, including those from Great Wall Motor and SAIC Motor Corp, as military tensions between the two countries had eased at the disputed border.

However, a day later sources denied that the government has given approval to 45 Chinese FDI proposals, and told CNBC-TV18 that pending Chinese FDI proposals were still under scrutiny.

“Recently, three FDI proposals were approved by the Indian government. These investments were being routed through Hong Kong. Two of these are Japanese companies and one is a promoter of Indian origin. These FDI proposals were in connection with sports goods, paints and watches,” said the source.

The report from Reuters also stated that these were held up since 2020 after India tightened controls on Chinese investment while retaliating against the alleged troop incursions in the Himalayan region. According to the report, about 150 investment proposals from China were still stuck.

Indian and Chinese troops have been engaged in an eyeball-to-eyeball confrontation since early-2020 at the Line of Actual Control (LAC), which is the de facto border. On Sunday (February 21), the two countries said that their troops had pulled out of the disputed area on the Himalayan border. A joint press release by both countries noted that this “was a significant step forward that provided a good basis for resolution of other remaining issues along the LAC in Western Sector”.

Since the Indo-China war of 1962, the border has been undefined. Last year on June 20 Indian soldiers were killed in clashes in the Galwan valley. India had said then that Chinese troops had intruded into its side of the territory. China had denied the intrusions, accusing Indian troops of provocative behaviour. Last week, after nine rounds of talks since June, Defence Minister Rajnath Singh said that both sides would be disengaging from the Pangong Lake area.